State to lay claim to Melbourne's stormwater

Every cloud ... Water Minister Peter Walsh has confirmed the Coalition is investigating ensuring that the ownership of all stormwater is officially 'vested in the Crown'. Photo: Paul Rovere

MILLIONS of litres of rainwater falling onto Melbourne's streets and down drains could soon become officially the property of the state, under new laws being considered by the Baillieu government.

Water Minister Peter Walsh has confirmed the Coalition is investigating ensuring that the ownership of all stormwater is officially ''vested in the Crown''.

The idea - an implicit recognition that rain flowing into drains should no longer be seen as a waste product but as a valuable resource - is that licences to use the water would then be sold to the highest bidder.

''Stormwater has always been seen as a drainage matter,'' Mr Walsh said. ''Quite rightly, we now understand it is a valuable alternative-water-supply opportunity and, therefore, it makes sense to address constraints that might be preventing optimum use.''

He said about 450 billion litres of stormwater runs off Melbourne a year - about the same as the total amount of drinking water consumed.

He said that as Victoria had emerged from a decade of drought, it was increasingly difficult to justify using drinking water for outdoor uses such as watering gardens.

The idea of clarifying the rights to use stormwater was included in the Baillieu government's economic statement, released late last year. It states ambiguous property rights had prevented new investment in infrastructure to use stormwater more effectively.

''Unclear property rights to water sources such as stormwater and recycled water constrain new entrants and productive investment in such resources,'' the statement said. ''Clarifying rights to these sources will encourage new investment and innovation.''

The most likely outcome is that ownership of stormwater in local-government drains would be owned by Melbourne Water, which would then issue licences to take and use stormwater, probably on a ''use it or lose it'' basis.

The state government argued the desalination plant commissioned by the former Labor government, which has the capacity to produce 150 billion litres of drinking water a year, has been a waste of money.

Mr Walsh said making smarter use of alternative water sources such as stormwater, wastewater and rainwater meant the need for further costly infrastructure would be minimised.

The government is introducing new targets to manage wastewater and stormwater run-off, with a new suburb near Werribee the first area to test the new rules.

The government eased water restrictions on the first day of summer, allowing residents to use sprinklers on any day of the week between 6pm and 10am.

The permanent rules also allow people to wash paved areas ''for health and safety reasons or to remove stains once a season, using either a hose fitted with a trigger nozzle or a high-pressure cleaning device''.

Opposition water spokesman John Lenders said that while harvesting stormwater was sensible, it was hypocritical of the Baillieu government to be considering imposing even greater costs on consumers while refusing to use the desalination plant.

''It is hypocritical if they are putting up costs even more simply because they want to make a political point about the desalination plant,'' he said. ''Stormwater is not cheap.''